The lending of U.S. financial institutions to shadow banks, which include fintechs and private credit groups, has surpassed $1 trillion, up from $894 billion last year. This milestone, referred to as 'the golden age of private credit,' has raised concerns among regulators about potential systemic risks, with the sector's growth rate outpacing overall lending. The Securities and Exchange Commission's new market-tracking database, criticized by Citadel Securities as a massive surveillance system, could impose billions of dollars in costs on the financial services industry and compromise investor privacy.
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For years we have discussed the huge risks that the shadow banking sector in the US was posing and would pose to the broader financial system in the future. It appears this is finally gaining some traction. As ever far too little and far too late. Financialisation means taking…
Loans to nonbank financial groups are growing much faster than overall lending! Are we unwittingly losing track of risks? https://t.co/O705M3F69t
#US lenders' debt to shadow banks passes $1tn - Regulators warn of systemic risks. @HarrisSamaras: But, why is "shadow banking" business growing so fast? Isn't it a phenomenon observed before and during recessions and crises? What exacerbates it? | @FT https://t.co/VqT5aWcND8 https://t.co/40rB4myvEO
Private credit is not a low-volatility solution While the S&P BDC Index (which contains private credit funds from all the top managers) has vol of 10 currently, during 2020 the asset class's vol breached 100 It's a medium risk asset class with good prospective returns https://t.co/eRdGtV8y2P
"The amount US financial institutions have loaned to shadow banks such as fintechs and private credit groups has passed $1tn, as regulators warn that growing ties between traditional and alternative lenders could present systemic risks." https://t.co/O5lhHrcLWz
Shadow (non-bank or syndicated) corporate lending has risen from $894 billion last year to over $1 trillion this year. They call it..."the golden age of private credit" Bubble in the making
Shadow (non-bank or syndicated) lending has risen from $894 billion last year to over $1 trillion this year. They call it..."the golden age of private credit" Bubble in the making
The amount that US banks have loaned to so-called shadow banks surpassed the $1 trillion mark even as regulators warn of potential risks https://t.co/RuBoUV1ujX
Not sure what's more concerning, the headline, the article, or the comments.. 😅🙄😬 US lenders’ debt to shadow banks passes $1tn via @FT https://t.co/xdXRZIE8Ns
"A new Securities and Exchange Commission market-tracking database is a “massive, unprecedented government surveillance system” that could cost the financial services industry billions of dollars and compromise investors’ privacy, according to Citadel Securities. The company,…
Lenders’ debt to shadow banks passes a trillion dollars in US https://t.co/fdkXmRuKvm